Tuesday markets
Feeder cattle caught a break today with lower corn prices, while live cattle were mixed. The cash cattle market is still quiet, but is expected to pick up in the second half of the week.
The February live cattle contract was up 87 cents to $117.45 and the April contract was down 12 cents to $123.82. A total of 993 head traded on the cash market, several hundred head more than the same time last week. Live steers sold for $114.20 and there were not enough dressed purchases for a market trend.
On the formula side, a total of 15,200 head averaging 882 lbs. were priced at $181.17.
Boxed beef prices were mixed: The Choice cutout was down $1.91 to $234.29 and the Select cutout was up 12 cents to $220.72 on 121 loads.
Today’s slaughter is projected at 115,000 head, several thousand head behind last week and last year—likely due to a Cargill plant shut down for maintenance.
Feeder cattle
Feeder cattle contracts were able to make some gains with the price of March corn down 7 cents to $5.56.
“Unfortunately, the back and forth behavior between the two markets is most likely going to continue until the corn market develops some sort of a top, and until strong feeder demand is sought with the spring run,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
All contracts were up: The March contract was up $1.20 to $138.65 and the April contract was up $1.70 to $143.17. The latest CME Feeder Cattle Index was reported up 16 cents to $135.63.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,893 head Monday. Compared to the prior sale, feeder steers sold unevenly steady and feeder heifers sold steady to $4 lower except 500-600 lbs. sold $8-10 higher. Demand for this lighter offering of feeder cattle was good this week. Receipts were lighter with the artic weather that is crossing the Midwest. Benchmark steers averaging 778 lbs. sold between $135.50-144. — Anna Miller, WLJ editor
